T-Mobile Finally Introduces 3G Service
T-Mobile lights up New York as rumors swirl about its parent company's interest in Sprint Nextel.Well behind the curve and with few handsets to support it, T-Mobile rolled out its 3G wireless network May 5 in New York. T-Mobile said it plans to expand the service to 20 to 25 U.S. markets by the end of 2008 in addition to introducing new phones to take advantage of the high-speed network. While rivals AT&T, Verizon and Sprint Nextel have already introduced third-generation wireless services, T-Mobile, a subsidiary of Deutsche Telekom, has been slowed by efforts to clear the airwaves for spectrum T-Mobile bought in 2006 for $4.2 billion. The rollout comes as rumors swirl that Deutsche Telekom may be interesting in purchasing struggling carrier Sprint.
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"The launch of our 3G network comes at a time when 3G phones and services are more affordable, capable and appealing to our consumer marketplace than ever before," Cole Brodman, chief development officer at T-Mobile USA, said in a statement. "We benefit not only from the economic scale of 3G, but also from the extensive commercial experience of 3G in our European markets." Since purchasing the spectrum at the 2006 Advanced Wireless Services auction by the Federal Communications Commission, T-Mobile has struggled to clear the spectrum, which was occupied by the Department of Defense and the Department of Justice. T-Mobile USA has 28.7 million subscribers.